In a setback to former President Donald Trump’s attempts to delay payment, an appeals court judge in New York denied his request to halt the enforcement of a $450 million judgment for extensive business fraud on Wednesday.
In a court filing earlier today, Trump indicated that he lacks the funds to halt the implementation of the judgment. He requested an appeals court to temporarily suspend the monetary penalty, along with several other penalties imposed by Justice Arthur Engoron. The judge had recently ruled that Trump had exaggerated the worth of his properties and personal net worth.
The First Department of the Appellate Division in New York is set to review Associate Justice Anil Singh’s interim ruling from Wednesday. This panel will decide whether to pause the judgment as Donald Trump continues his appeal.
Singh did not grant Trump’s primary request; however, he did order a temporary halt to one of the penalties imposed by Engoron. This penalty was a three-year ban on Trump’s ability to secure a loan from a New York bank.
This means that Trump has the option to request an appeal bond for the entire penalty amount. By doing so, he can prevent any efforts to collect the penalty while the appeals process is ongoing.
Trump’s lawyers argued to the appeals court that the former president would be unable to obtain the complete amount for an appeal bond. They cited the loan restriction imposed by Engoron and the associated costs and fees as contributing factors. According to them, the total cost would exceed $550 million.
According to Trump’s lawyers, the enormous and punitive sum of the Judgment, along with an unlawful and unconstitutional ban on lending transactions, would render it impossible to obtain and fulfill a comprehensive bond.
Trump’s lawyers proposed an alternative solution by suggesting that Trump could secure a $100 million bond. This amount is significantly lower than what is typically required to prevent the enforcement of the judgment.
When a defendant decides to appeal a civil judgment, there are typically two options available to prevent collection efforts during the appeal process. The first option is to deposit the full amount into an escrow fund. Alternatively, the defendant can secure a third-party bond to guarantee the full payment.
If Trump is unable to secure a complete bond or provide the cash himself, New York Attorney General Letitia “Tish” James, who filed the civil fraud lawsuit against the former president, may commence efforts to collect the judgment. This could involve targeting Trump’s bank accounts or properties.
Judge Engoron delivered a staggering verdict of $354.8 million against Trump on February 16th, following a lengthy three-month trial in Manhattan. Taking into account interest, the total amount owed by Trump now exceeds $450 million. Additionally, Engoron imposed a three-year prohibition on Trump’s ability to run a business in New York.
In a recent court filing, Trump is making efforts to postpone the payment of an $83.3 million judgment he owes to writer E. Jean Carroll as a result of a defamation lawsuit. Trump is requesting the judge to allow him to delay payment until after he presents his post-trial arguments. Additionally, Trump is seeking permission to post a bond equivalent to a fraction of the total judgment amount.
The outstanding debt that Trump has on the two significant judgments increases by tens of thousands of dollars daily, accumulating interest on them.